I have some questions regarding transaction fees on private blockchain. I'd appreciate your help. Also, if there are any references I can read about this, please let me know.

  1. Do transaction fees occur in private blockchains in the form of sidechains? maybe of course, but I was wondering if I could set the transaction fees for transfer/mint functions to be 0. But then, miners in my private blockchain would have no incentives, right?

  2. I heard transaction fees are much lower in sidechains like Ronin, how is it possible? Is it simply because of less congestion?

  3. I believe I can control/set transaction fees for transactions within my private blockchains, but for any transactions that require communications with mainnet, I cannnot control the transaction fess in any way, is it correct?

  4. What ways are there to reduce the transaction fees in private blockchains? One idea i have is that if the entire network is owned by my organization or consortium meaning a permissioned network, and if we could all agree on a certain fee, then I guess we could fix the transaction fees low, right?

  5. Can a consensus algorithm affect the transaction fees?

1 Answer 1


In a private blockchain, you can use Quorum:

  • there is no transaction fee in it
  • it is almost identical to Ethereum in terms of smart contracts and in general
  • there will be no forks in it
  • it does not form blocks that do not contain transactions, which saves space
  • it has a mechanism of protected private smart contracts (for example, Tessera)
  • in general, it is more stable than Ethereum and is better suited for private networks with a relatively small number of nodes (up to 100)
  • that didn't answer my question. but thanks.
    – Nayana
    Jan 21, 2022 at 1:59

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